Presnt

STATISTICAL QUALITY CONTROL
Total Quality Management

ME 513
Course Outcomes (CO):
At the end of the course the student will be able to
• CO 1: Understand the concept of quality and
evolution of quality concepts over the years
• CO 2: Apply statistical concepts for solving simple
quality problems.
• CO 3: Draw and analyze control charts for variables.
• CO 4: Draw and analyze the control chart for
attributes.
• CO 5: Understand the basic concepts of Acceptance
Sampling and Design of experiments.
Text Books:
Statistical Quality Control: E.L. Grant and R.S. Leavenworth, 7th edition,
McGraw- Hill publisher, 2004.
Statistical Quality Control: RC Gupta, Khanna Publishers, New Delhi, 3rd
edition, 2005.
Total Quality Management: Dale H. Besterfield, Pearson Education, 3rd
edition, 2011.
Reference Books:
Statistical Process Control and Quality Improvement: Gerald M. Smith,
Pearson Prentice Hall. ISBN 0 – 13-049036-9.
Statistical Quality Control for Manufacturing Managers: W S Messina, Wiley
& Sons, Inc. New York, 1987
Statistical Quality Control: Montgomery, Douglas, 5th Edition, John Wiley &
Sons, Inc. 2005, Hoboken, NJ (ISBN 0-471-65631-3).
Principles of Quality Control: Jerry Banks, Wiley & Sons, Inc. New York.
Design and Analysis of Experiments: R. Pannerselvam, PHI Learning Private
Limited, New Delhi., 2012
NPTEL course material on Design of Experiments.
Innovation? – A fourth dimension?
Questions
• 3 dimensions of achieving competitive
advantage ?
• Quality by Design?
• Statistical Quality Control
• Quality Engineering
• Q= P/E?
DIFINITION OF QUALITY
• The concept and vocabulary of quality are elusive. Different

people interpret quality differently. Few can define quality
in measurable terms that can be proved operationalized.
When asked what differentiates their product or service;
The banker will answer” service”

The healthcare worker will answer “quality health care”
The hotel employee will answer “customer satisfaction”
The manufacturer will simply answer “quality product”
Five Approaches of Defining Quality
• Harvard professor David Garvin, in his book

Managing Quality summarized five principal
approaches to define quality.
• Transcendent
• Product based
• User based
• Manufacturing based
• Value based
Transcendental view
• Those who hold the transcendental view would say “I can’t

define it, but I know it when I see it”
• Advertisers are fond of promoting products in these terms.
“ Where shopping is a pleasure” (supermarket). “We love to
fly and it shows" (airline).
Television and print media are awash with such indefinable
claims and therein lies the problem:
• Quality is difficult to define or to operationalize. It thus
becomes elusive when using the approach as basis for
competitive advantage. Moreover, the functions of design,
production and service may find it difficult to use the
definition as a basis for quality management.
PRODUCT BASED
• Quality is viewed as a quantifiable or measurable

characteristic or attribute. For example durability or
reliability can be measured and the engineer can design to
that benchmark.
• Quality is determined objectively.
• Although this approach has many benefits, it has limitation
as well. Where quality is based on individual taste or
preference, the benchmark for measurement may be
misleading.
USER BASED
It is based on idea that quality is an individual matter and products

that best satisfy their preferences are those with the highest
quality. This is rational approach but leads to two problems;
▪ Consumer preference vary widely and it is difficult to aggregate
these preferences into products with wide appeal. This leads to
the choice between a niche strategy or a market aggregation
approach which tries to identify those product attributes that meet
the needs of the largest number of consumers.
▪ Another problem concerns the answer to the question “Are
quality and customer satisfaction the same?” the answer is
probably not. One may admit that a Lincoln continental has many
quality attribute, but satisfaction may be better achieved with an
Escort.
MANUFACTURING BASED
• Manufacturing-based definitions are concerned primarily

with engineering and manufacturing practices and use the
universal definition of “conformance to requirements”.
Requirements or specifications are established by design
and any deviation implies a reduction in quality. The
concept applies to services as well as product. Excellence in
quality is not necessarily in the eye of the beholder but
rather in the standards set by the organization.
• This approach has the serious weakness. The consumer’s
perception of quality is equated with conformance and
hence is internally focused.
Value Based
• It is defined in term of costs and prices as well as

number of other attributes. Thus, the consumer’s
purchased decision is based on quality at an
acceptable price. This approach is reflected in the
popular Consumer Reports magazine which ranks
products and services based on two criteria: Quality
and Value.
• The highest quality is not usually the best value.
That designation is assigned to the “best- buy”
product or service.
The dimensions of quality
•Performance
•Features
•Conformance
QUALITY CHARACTERISTICS
•Reliability
1. Physical
•Durability 2. Sensory
3. Time orientation
•Service
•Response
•Aesthetics
•Reputation
Key Dimensions of Quality
◆ Performance ◆ Durability
◆ Features ◆ Serviceability
◆ Reliability ◆ Aesthetics
◆ Conformance ◆ Perceived quality
◆ Value
© 2011 Pearson Education, Inc. publishing

as Prentice Hall
Defining Quality
The totality of features and

characteristics of a product or service
that bears on its ability to satisfy stated
or implied needs
American Society for Quality

as Prentice Hall
Quality – Fitness for use
Q = P/E
Q = QUALITY
P = PERFORMANCE
E = EXPECTATIONS
Quality of Design
Intentional levels or grades of quality.
Quality of Conformance
How well the product conforms to specifications and
tolerances required by design.
Quality Engineering
Operational, Managerial and Engineering activities that
a company uses to ensure that the quality
characteristics are at the nominal or required levels.
Variability
• No two products are identical
• If variation is large product may be unacceptable
• materials, operators, equipments may lead to
variability
Quality Improvement
Reduction of variability in processes and products
Since variation can only be described in statistical

terms, statistical methods are of considerable use in
quality improvement efforts
Quality improvement as business
strategy
• Strong consumer quality-performance orientation
• Product liability
• Increasing cost pressures on labour, energy and
raw materials
• More intensive competition
• Dramatic improvements in productivity through
quality engineering programmes
Two Ways Quality
Improves Profitability
Sales Gains via
◆ Improved response
◆ Flexible pricing
◆ Improved reputation
Improved Increased
Quality Profits
Reduced Costs via
◆ Increased productivity
◆ Lower rework and scrap costs
◆ Lower warranty costs
Figure 6.1
as Prentice Hall
Questions
• Different views of quality?
Transcendental, product based, user based,
manufacturing based and value based
• Quality characteristics/ Dimensions of quality
– Physical, sensory, time oriented
Costs of quality
– Prevention, appraisal, , internal failure and
external failure
Costs of Quality
◆ Prevention costs - reducing the potential

for defects
◆ Appraisal costs - evaluating products,
parts, and services
◆ Internal failure - producing defective
parts or service before delivery
◆ External costs - defects discovered after
delivery
as Prentice Hall
Prevention costs
• Quality planning and engineering
• New products reviews
• Product/ process design
• Process control
• Burn – in : Preshipment to prevent early
failures
• Training
• Quality data acquisition and analysis
Appraisal costs
• Inspection and test of incoming material
• Product Inspection and test
• Materials and services consumed – consumed
in reliability tests, devalued by reliability tests
• Maintaining accuracy of test equipment
Internal failure costs
• Scrap
• Rework
• Retest
• Failure Analysis
• Downtime
• Yield losses
• Downgrading/ off - specing
External Failure costs
• Component adjustment
• Returned product/ material
• Warranty charges
• Liability costs – including litigation
• Indirect costs – reputation, future business
Costs of Quality
Total Total Cost

Cost
External Failure
Internal Failure
Prevention
Appraisal
Quality Improvement

as Prentice Hall
Ethics and Quality Management
◆ Operations managers must deliver
healthy, safe, quality products and
services
◆ Poor quality risks injuries, lawsuits,
recalls, and regulation
◆ Organizations are judged by how they
respond to problems
◆ All stakeholders must be considered

as Prentice Hall
Methods of Quality Improvement
• Acceptance sampling
• Statistical Process Control
• Design of Experiments
• Zero defects program
• Quality Circle programme

Acceptance Sampling
• Acceptance sampling is a method used to accept or reject
product based on a random sample of the product.
• The purpose of acceptance sampling is to sentence lots (accept

or reject) rather than to estimate the quality of a lot.
• Acceptance sampling plans do not improve quality. The nature

of sampling is such that acceptance sampling will accept some
lots and reject others even though they are of the same quality.
• The most effective use of acceptance sampling is as an auditing

tool to help ensure that the output of a process meets
requirements.
Lesson 15
Acceptance Sampling
a form of inspection applied to lots

or batches of items before or after a
process to judge conformance to
predetermined standards
15 - 1
DESIGN OF EXPERIMENTS
34
OM’s Transformation Process
Controllable variables
x1 x2 x3 xn
y1 y2 y3 yn Uncontrollable variables
© Wiley 2010 35
Role of DOE in Process Improvement
• DOE is a formal mathematical method for
systematically planning and conducting
scientific studies that change experimental
variables together in order to determine
their effect of a given response.
• DOE makes controlled changes to input

variables in order to gain maximum
amounts of information on cause and effect
relationships with a minimum sample size.
36
• DOE is more efficient that a standard approach

of changing “one variable at a time” in order
to observe the variable’s impact on a given
response.
• DOE generates information on the effect

various factors have on a response variable
and in some cases may be able to determine
optimal settings for those factors.
37
• DOE encourages “brainstorming” activities

associated with discussing key factors that may
affect a given response and allows the
experimenter to identify the “key” factors for
future studies.
• DOE is readily supported by numerous

statistical software packages available on the
market.
38
BASIC STEPS IN DOE
• Four elements associated with DOE:
• 1. The design of the experiment,
• 2. The collection of the data,
• 3. The statistical analysis of the data, and
• 4. The conclusions reached and
recommendations made as a result of the
experiment.
39
PLANNING A DOE
• Everyone involved in the experiment should

have a clear idea in advance of exactly what
is to be studied, the objectives of the
experiment, the questions one hopes to
answer and the results anticipated
40
PLANNING A DOE
• Select a response/dependent variable

(variables) that will provide information
about the problem under study and the
proposed measurement method for this
response variable, including an
understanding of the measurement system
variability
41
PLANNING A DOE
• Select the independent variables/factors

(quantitative or qualitative) to be
investigated in the experiment, the number
of levels for each factor, and the levels of
each factor chosen either specifically (fixed
effects model) or randomly (random effects
model).
42
PLANNING A DOE
• Choose an appropriate experimental design
(relatively simple design and analysis methods
are almost always best) that will allow your
experimental questions to be answered once the
data is collected and analyzed, keeping in mind
tradeoffs between statistical power and
economic efficiency. At this point in time it is
generally useful to simulate the study by
generating and analyzing artificial data to insure
that experimental questions can be answered as
a result of conducting your experiment
43
PLANNING A DOE
• Perform the experiment (collect data)

paying particular attention such things as
randomization and measurement system
accuracy, while maintaining as uniform an
experimental environment as possible.
How the data are to be collected is a critical
stage in DOE
44
PLANNING A DOE
• Analyze the data using the appropriate

statistical model insuring that attention is
paid to checking the model accuracy by
validating underlying assumptions
associated with the model. Be liberal in the
utilization of all tools, including graphical
techniques, available in the statistical
software package to insure that a maximum
amount of information is generated
45
PLANNING A DOE
• Based on the results of the analysis, draw

conclusions/inferences about the results,
interpret the physical meaning of these
results, determine the practical significance
of the findings, and make
recommendations for a course of action
including further experiments
46
FACTORIAL (2k) DESIGNS
• Factors are assumed to be fixed (fixed
effects model)
• Designs are completely randomized
(experimental trials are run in a random
order, etc.)
• The usual normality assumptions are
satisfied.
47
• Particularly useful in the early stages of
experimental work when you are likely to
have many factors being investigated and
you want to minimize the number of
treatment combinations (sample size) but,
at the same time, study all k factors in a
complete factorial arrangement (the
experiment collects data at all possible
combinations of factor levels).
48
• As k gets large, the sample size will increase

exponentially. If experiment is replicated,
the # runs again increases.
k # of runs
2 4
3 8
4 16
5 32
6 64
7 128
8 256
9 512
10 1024 49
FACTORIAL (2k) DESIGNS (k = 2)
• Two factors set at two levels (normally
referred to as low and high) would result in
the following design where each level of
factor A is paired with each level of factor
B.
Generalized Settings Orthogonal Settings
RUN Factor A Factor B RESPONSE RUN Factor A Factor B RESPONSE
1 low low y1 1 -1 -1 y1
2 high low y2 2 +1 -1 y2
3 low high y3 3 -1 +1 y3
4 high high y4 4 +1 +1 y4
50
Towards Achieving Zero-Defect Quality:
Mistake-Proofing
What causes defects?
• Cultural factors
• Variance
• Complexity
• Mistakes
What tools are used to achieve zero
defects?
• Cultural factors:
– Teams, Driving out fear, management commitment
• Variance
– SPC, Taguchi & DOE,
• Complexity
– Process Mapping, DFMA
• Mistakes
– Mistake-proofing, Poka-Yoke, or ZQC
DFMA Example
Evidence of the Effectiveness of
Mistake-proofing
• AT&T Power Systems is first US manufacturer to win

the Deming prize. Average outgoing defects reduced
by 70%
• A washing machine drain pipe assembly line
produced 180,000 units without a single defect (6
months).
• TRW reduced customer PPM’s from 288 to 2.
• AT&T Power Systems is first US manufacturer to
win the Deming prize. Average outgoing defects
reduced by 70%
• A washing machine drain pipe assembly line
produced 180,000 units without a single defect (6
months).
• TRW reduced customer PPM’s from 288 to 2.
Quality Circles
What is a Quality Circle?
• Voluntary groups of employees who work on similar
tasks or share an area of responsibility
• They agree to meet on a regular basis to discuss &
solve problems related to work.
• They operate on the principle that employee
participation in decision-making and problem-solving
improves the quality of work.
How Do Quality Circles Work?
• Characteristics
– Volunteers
– Set Rules and Priorities
– Decisions made by Consensus
– Use of organized approaches to Problem-Solving
How Do Quality Circles Work?
• All members of a Circle need to receive

training.
• Members need to be empowered.
• Members need to have the support of Senior
Management.
How Can They be Used in an
Organization?
• Increase Productivity
• Improve Quality
• Boost Employee Morale
MURA – Discrepancy
MUDA – Waste
MURI – Strain
QUESTIONS?
What are 5S?
What are 3Mu?
MUDA(Waste), MURI(Strain), MURA (Discrepancy)

International Quality Standards
◆ ISO 9000 series (Europe/EC)

◆ Common quality standards for products sold in Europe (even if
made in U.S.)
◆ 2008 update places greater emphasis on leadership and
customer requirements and satisfaction
◆ ISO 14000 series (Europe/EC)
© 2011 Pearson Education, Inc.

publishing as Prentice Hall
This American National Standard (ANS) is an identical
adoption of ISO 9001:2015. The text of this ANS does not
differ in any way from ISO 9001:2015
Organizations certified to the ISO 9001:2008 standard will have a three-year
period to transition to ISO 9001:2015. When the transition period ends in
September 2018, ISO 9001:2008 certificates will no longer be valid.
This International Standard specifies requirements for a quality management
system when an organization:
a) needs to demonstrate its ability to consistently provide products and
services that meet customer and applicable statutory and regulatory
requirements, and
b) aims to enhance customer satisfaction through the effective application of
the system, including processes for improvement of the system and the
assurance of conformity to customer and applicable statutory and regulatory
requirements.
All the requirements of this International Standard are generic and are
intended to be applicable to any organization, regardless of its type or size, or
the products and services it provides.
ISO 14000
Environmental Standard
Core Elements:
◆ Environmental management
◆ Auditing
◆ Performance evaluation
◆ Labeling
◆ Life cycle assessment

ISO 14000
Environmental Standard
Advantages:
◆ Positive public image and reduced
exposure to liability
◆ Systematic approach to pollution
prevention
◆ Compliance with regulatory requirements
and opportunities for competitive
advantage
◆ Reduction in multiple audits
TQM
Encompasses entire organization, from supplier
to customer
Stresses a commitment by management to have
a continuing, companywide drive toward
excellence in all aspects of products and
services that are important to the customer

TQM
• Both a Philosophy and a set of guiding
principles that represent the foundation of a
continuously improving organization. It is the
application of quantitative methods and
human resource to improve all processes
within an organization and exceed customer
needs of now and future. TQM integrates
fundamental management techniques,
existing improvement efforts and tools under
a disciplined approach.
6 basic concepts of TQM
• A committed and improved management to
provide top to bottom organized support.
• Unwavering focus on internal and external
customers.
• Effective involvement and utilization of the entire
workforce.
• Continuous improvement of business and
production processes
• Treating suppliers as partners
• Establish performance measures for processes.
Difference between TQM old and New states
Item Previous state New state

Definition Product oriented Customer oriented
Priorities Quality second to cost First among equals of cost
and service and service
Decisions Short term Long term
Emphasis Detection Prevention
Causes of Errors Operations Systems
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurements Price Lifecycle costs, Partnership
Managerial role Plan, Assign, Control and Delegate, Coach, Facilitate
Enforce and Mentor
Seven Methods of TQM
1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of 7 TQM tools (7 tools of Quality)

Continuous Improvement/ Kaizen
principles
◆ Represents continual improvement of
all processes
◆ Involves all operations and work
centers including suppliers and
customers
◆ People, Equipment, Materials,
Procedures

Six Sigma
◆ Two meanings
◆ Statistical definition of a process that is
99.9997% capable, 3.4 defects per million
opportunities (DPMO)
◆ A program designed to reduce defects,
lower costs, and improve customer
satisfaction

Six Sigma Quality
 6
• A philosophy and set of methods companies use to
eliminate defects in their products and processes
• Seeks to reduce variation in the processes that lead
to product defects
• The name “six sigma” refers to the variation that
exists within plus or minus six standard deviations of
the process outputs
Six Sigma
Lower limits Upper limits
◆ Two meanings
2,700 defects/million
◆ Statistical definition of a process that

3.4 defects/million
is 99.9997% capable, 3.4 defects per
million opportunities (DPMO)
◆ A program designed to reduce
defects, lower costs, Mean
and improve
customer satisfaction
±3
±6
Figure 6.4

Six Sigma Quality
Six Sigma Roadmap (DMAIC)
Next Project Define
Customers, Value, Problem Statement Validate
Scope, Timeline, Team Project $
Celebrate Primary/Secondary & OpEx Metrics
Project $ Current Value Stream Map
Measure
Voice Of Customer (QFD)
Control Assess specification / Demand
Document process (WIs, Std Work) Measurement Capability (Gage R&R)
Mistake proof, TT sheet, CI List Correct the measurement system
Analyze change in metrics Process map, Spaghetti, Time obs.
Value Stream Review Measure OVs & IVs / Queues
Prepare final report
Validate
Project $
Validate
Project $
Improve Analyze (and fix the obvious)

Optimize KPOVs & test the KPIVs Root Cause (Pareto, C&E, brainstorm)
Redesign process, set pacemaker Find all KPOVs & KPIVs
Validate
5S, Cell design, MRS FMEA, DOE, critical Xs, VA/NVA
Project $
Visual controls Graphical Analysis, ANOVA
Value Stream Plan Future Value Stream Map
* KPIV/KPOV= Key Process Input and Output Variables

Quality Function Deployment (QFD)
House of Quality
Spaghetti Chart
Employee Empowerment
◆ Getting employees involved in product and
process improvements
◆ 85% of quality problems are due
to process and material
◆ Techniques
◆ Build communication networks
that include employees
◆ Develop open, supportive supervisors
◆ Move responsibility to employees
◆ Build a high-morale organization
◆ Create formal team structures

Benchmarking
Selecting best practices to use as a standard
for performance
1. Determine what to
benchmark
2. Form a benchmark team
3. Identify benchmarking partners
4. Collect and analyze benchmarking
information
5. Take action to match or exceed the
benchmark
Just-in-Time (JIT)
Relationship to quality:
◆ JIT cuts the cost of quality
◆ JIT improves quality
◆ Better quality means less inventory
and better, easier-to-employ JIT
system

Just-in-Time (JIT)
◆ ‘Pull’ system of production scheduling

including supply management
◆ Production only when signaled
◆ Allows reduced inventory levels

◆ Inventory costs money and hides process and material problems
◆ Encourages improved process and product

quality

Just-In-Time (JIT) Example
Work in process
inventory level
(hides problems)
Unreliable Capacity Imbalances

Vendors Scrap

Just-In-Time (JIT) Example
Reducing inventory reveals
problems so they can be solved
Unreliable Capacity Imbalances

Vendors Scrap

Questions?
• Basic concepts of TQM?

• Defects per million in a process that meets 6
sigma?
• DMAIC of 6 sigma?
• Different types of inventories?
Taguchi Concepts
◆ Engineering and experimental design
methods to improve product and process
design
◆ Identify key component and process
variables affecting product variation
◆ Taguchi Concepts
◆ Quality robustness
◆ Quality loss function
◆ Target-oriented quality
Quality Robustness
◆ Ability to produce products uniformly in

adverse manufacturing and environmental
conditions
◆ Remove the effects of adverse conditions

◆ Small variations in materials and process do
not destroy product quality

as Prentice Hall
Quality Loss Function
◆ Shows that costs increase as the

product moves away from what the
customer wants
◆ Costs include customer dissatisfaction,
warranty and service, internal
scrap and repair, and costs to society
◆ Traditional conformance specifications
are too simplistic
Quality Loss Function
High loss
L = D 2C
Unacceptable where
Loss (to L = loss to society
producing Poor
organization, D = distance from target
customer, and Fair value
society) Good C = cost of deviation
Best
Low loss Target-oriented quality
yields more product in
the “best” category
Target-oriented quality
brings product toward the
Frequency target value
Conformance-oriented
quality keeps products
within 3 standard
deviations
Lower Target Upper
Specification Figure 6.5
Quality Guru’s
Juran: Quality Trilogy
Managing for quality consists of three basic quality-oriented
processes:
• quality planning,
• quality control, and
• quality improvement.
The role of quality planning is to design a process that will be

able to meet established goals under operating conditions.
The role of quality control is to operate and when necessary
correct the process so that it performs with optimal
effectiveness.
The role of quality improvement is to devise ways to take the
process to unprecedented levels of performance.
Juran Trilogy
1. Quality Planning
• Quality planning stems from a unity of purpose that spans all
functions of an organization.
• The subject of planning can be anything -- an engineering
process for designing new products, a production process for
making goods, or a service process for responding to
customer requests.
• Quality Planning involves
– Identifying customers, both internal and external
– Determining their needs
– Specifying the product features that satisfy those needs at minimum
cost.
– Designing the processes that can reliably produce those features.
– Proving that the process can achieve its goals under operating
conditions.
Juran Trilogy
2. Quality Control
• The process of managing operations to meet quality
goals.
• The process of Quality Control involves:
– Choosing control subjects
– Choosing units of measurement
– Establishing a measurement procedure
– Measuring
– Interpreting differences between measurement and goal.
– Taking action to correct significant differences
Juran Trilogy
3. Quality Improvement
• Assuming the process is under control, any waste that occurs must
be inherent in the design of the process.
• The object of quality improvement is to reduce chronic waste to a
much lower level.
• The steps in Quality Improvement:
– Prove the need for improvement
– Identify specific projects for improvement
– Organize to guide the projects
– Organize for diagnosis -- discovery of causes
– Diagnose the causes
– Provide remedies
– Prove that the remedies are effective under operating conditions
– Provide for control to maintain the gains.
Walter Shewhart - The Grandfather of Total Quality
Management
• Born March 18, 1891
• Died March 11, 1967 (aged 75)
1. Introduced the concept of control
charts.
2. Introduced PDCA cycle later
known as PDSA cycle.
3. Divided the Causes of variations.
into chance and assignable causes
4. Introduced the concept of rational
subgroups.
Philip Crosby
Zero defects, Quality is free
• Quality means conformance to requirements.
• The real costs of quality are the costs of non-

conformance (such as rework, scrap, and warranty
costs).
• Do it right the first time and we avoid these costs,

thereby improving profitability.
Crosby: Absolutes of Quality
• Quality is conformance to requirements
• The system of quality is prevention
• The performance standard is zero defects
• The measurement of quality is the price of non-conformance

Crosby: Price of conformance and non-
conformance
• The costs of quality (COQ) are similar to Juran’s.
– Prevention costs (design reviews, supplier evaluations,
training, preventive maint.)
– Appraisal costs (inspections and tests to determine
conformance to requirements)
– Failure costs (rework, scrap, warranty costs, lost sales,
product liability)
• Crosby emphasizes that prevention efforts help us avoid

failure costs and appraisal costs.
• Prevention allows us to increase profits without increasing

sales, buying new equipment, or hiring people.
Crosby: 14 Steps to Quality Improvement
• Management commitment • Supervisor training
• Quality improvement teams • Zero Defects day
• Quality measurement • Goal setting
• Cost of Quality evaluation • Error cause removal
• Quality awareness • Recognition
• Corrective action • Quality councils
• Zero defects program • Do it all over again

QUESTIONS?
• Components of Juran’s Trilogy?
• Meaning of PDSA?
• Who published Quality Control Handbook?
Edward Deming
What do the philosophies of Deming, Juran, and
Crosby Have in common?
• Customer Focused
• Commitment and Leadership from Top

Management
• Continuous Improvement Based on Facts
• Team Based
Customer Satisfaction
Company
offerings Customer
Needs
Degree to which customers’ experience with the product/ service meets

expectations
Customer Feedback
• Discover Customer dissatisfaction
• Discover relative priorities of quality
• Compare performance with competitors
• Identify customers’ needs
• Determine opportunities for improvement
End user perception of customer
quality according to ASQ survey
• Performance
• Features
• Service
• Warranty
• Price
• Reputation
Various information collecting tools
• Customer cards
• Customer questionnaire
• Focus groups – Imprint analysis
• Toll-free Telephone numbers
• Customer Visits
• Report card
• Internet and computers
• Employee feedback
• Mass customization
• American Customer Satisfaction Index
Characteristics of Quality Leaders
• Give priority attention to internal and external customer needs
• Empower subordinates
• Emphasize improvement
• Emphasize prevention
• Emphasize collaboration
• Train and coach
• Learn from problems
• Improve communications
• Continually demonstrate commitment to quality
• Chose suppliers based on quality
• Establish organization systems to support quality effort
• Encourage and recognize team effort
Tools of TQM (7 tools of Quality)
◆ Tools for Generating Ideas
◆ Check sheets
◆ Scatter diagrams
◆ Cause-and-effect diagrams
◆ Tools to Organize the Data
◆ Pareto charts
◆ Flowcharts

Tools of TQM
◆ Tools for Identifying Problems
◆ Histogram
◆ Statistical process control chart

Seven Tools of TQM
(a) Check Sheet: An organized method of recording data
Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / / // ///
C / // // ////
Figure 6.6
Seven Tools of TQM
(b) Scatter Diagram: A graph of the value of one variable vs.
another variable
Productivity
Absenteeism
Figure 6.6
Seven Tools of TQM
(c) Cause-and-Effect Diagram: A tool that identifies process
elements (causes) that might effect an outcome
Cause
Materials Methods
Effect
Manpower Machinery
Figure 6.6
Seven Tools of TQM
(d) Pareto Chart: A graph to identify and plot problems or defects in
descending order of frequency
Frequency
Percent
A B C D E
Figure 6.6
Seven Tools of TQM
(e) Flowchart (Process Diagram): A chart that describes the steps in a
process
Figure 6.6
Seven Tools of TQM
(f) Histogram: A distribution showing the frequency of occurrences of a
variable
Distribution
Frequency
Repair time (minutes)

Figure 6.6
Seven Tools of TQM
(g) Statistical Process Control Chart: A chart with time on the horizontal
axis to plot values of a statistic
Upper control limit
Target value
Lower control limit
Time
Figure 6.6
Cause-and-Effect Diagrams
Material Method
(ball) (shooting process)
Grain/Feel Aiming point
(grip)
Size of ball
Air pressure Bend knees
Hand position
Balance
Lopsidedness
Follow-through
Missed
Training
free-throws
Rim size
Conditioning Motivation Rim height
Consistency Rim alignment Backboard

stability
Concentration
Machine
Manpower
(hoop & Figure 6.7
(shooter)
backboard)
Pareto Charts
Data for October
– 100
70 – – 93
– 88
60 –
54
– 72
Frequency (number)
50 –
Cumulative percent
40 –
Number of
30 –
occurrences
20 –
12
10 –
4 3 2
0 –
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
Causes and percent of the total
Flow Charts
MRI Flowchart
1. Physician schedules MRI 7. If unsatisfactory, repeat
2. Patient taken to MRI 8. Patient taken back to room
3. Patient signs in 9. MRI read by radiologist
4. Patient is prepped 10. MRI report transferred to
5. Technician carries out MRI physician
6. Technician inspects film 11. Patient and physician discuss
8
80%
1 2 3 4 5 6 7 11
9 10
20%

Statistical Process Control (SPC)
◆ Uses statistics and control charts to tell
when to take corrective action
◆ Drives process improvement
◆ Four key steps
◆ Measure the process
◆ When a change is indicated, find the assignable cause
◆ Eliminate or incorporate the cause
◆ Restart the revised process

An SPC Chart
Plots the percent of free throws missed
20% Upper control limit
10% Coach’s target value
0% | | | | | | | | |
Lower control limit
1 2 3 4 5 6 7 8 9
Game number
Figure 6.8
5.4 THE REST OF THE “MAGNIFICENT SEVEN”
1. Histogram or stem-and-leaf plot

2. Check sheet
3. Pareto chart
4. Cause-and-effect diagram
5. Defect concentration diagram
6. Scatter diagram
7. Control chart
Chapter 5 Introduction to Statistical Quality Control, 7th Edition by Douglas C. Montgomery. 163
Copyright (c) 2012 John Wiley & Sons, Inc.
Check Sheet
Pareto Chart
Cause-and-Effect Diagram
Defect Concentration Diagram
Scatter Diagram
5.5 Implementing SPC in a Quality Improvement Program
5.6 An Application of SPC
• Improving quality in a copper plating operation at a
printed circuit board fabrication plant
• The DMAIC process was used
• During the define step, the team decided to focus on
reducing flow time through the process
• During the measures step, controller downtown was
recognized as a major factor in excessive flow time
5.7 Applications of SPC and Quality Improvement
Tools in Transactional and Service Businesses
• Nonmanufacturing applications often do not differ
substantially from industrial applications, but
sometimes require ingenuity
1. Most nonmanufacturing operations do not have a natural
measurement system
2. The observability of the process may be fairly low
3. People are usually involved in transactional and services
processes, and variability between people may be an
important part of the problem
• Flow charts, operation process charts and value
stream mapping are particularly useful in developing
process definition and process understanding. This is
sometimes called process mapping.
– Used to identify value-added versus nonvalue-added
activity
Value Stream Mapping
Transactional and Service Businesses
• All of the quality improvement tools can be used,

including designed experiments
• Sometimes a simulation model if the process is useful
• More likely to encounter attribute data
• Lots of the continuous data may not be normally
distributed (such as cycle time)
• Non-normality isn’t a big problem, because many
techniques are relatively insensitive to the normality
assumption
• Transformations and nonparametric methods could be
used if the problem is severe enough
Consider a regression model on y = cycle time to process a claim in an
insurance company:
Questions?
• What are 7 tools of Quality?
•
Review of Probability & Statistics
• Measures of Central tendency
– Variables Data … continuous … measurements
Proportions
Sampling Distributions
(The Central Limit Theorem)
• Regardless of the underlying distribution, if
the sample is large enough (>30), the
distributions will be normally distributed
around the population mean with a standard
deviation of :
 s = / n
Example:
Consider rolling a fair die 30 times recording
the value each time. If you repeat this say
1000 times, the mean of the sampling
distribution will be close to the mean of the
population (3.5) and the and the standard
deviation will be close to 1.71/(30) .5 = 1.71

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STATISTICAL QUALITY CONTROL

Total Quality Management

• The concept and vocabulary of quality are elusive. Different

The banker will answer” service”

• Harvard professor David Garvin, in his book

• Those who hold the transcendental view would say “I can’t

• Quality is viewed as a quantifiable or measurable

It is based on idea that quality is an individual matter and products

• Manufacturing-based definitions are concerned primarily

• It is defined in term of costs and prices as well as

© 2011 Pearson Education, Inc. publishing

The totality of features and

American Society for Quality

© 2011 Pearson Education, Inc. publishing

Since variation can only be described in statistical

◆ Prevention costs - reducing the potential

Total Total Cost

© 2011 Pearson Education, Inc. publishing

© 2011 Pearson Education, Inc. publishing

• Statistical Process Control

• Zero defects program

• Quality Circle programme

• The purpose of acceptance sampling is to sentence lots (accept

• Acceptance sampling plans do not improve quality. The nature

• The most effective use of acceptance sampling is as an auditing

a form of inspection applied to lots

• DOE makes controlled changes to input

• DOE is more efficient that a standard approach

• DOE generates information on the effect

• DOE encourages “brainstorming” activities

• DOE is readily supported by numerous

• Everyone involved in the experiment should

• Select a response/dependent variable

• Select the independent variables/factors

• Perform the experiment (collect data)

• Analyze the data using the appropriate

• Based on the results of the analysis, draw

• As k gets large, the sample size will increase

• AT&T Power Systems is first US manufacturer to win

• All members of a Circle need to receive

What are 3Mu?

MUDA(Waste), MURI(Strain), MURA (Discrepancy)

◆ ISO 9000 series (Europe/EC)

◆ ISO 14000 series (Europe/EC)

© 2011 Pearson Education, Inc.

© 2011 Pearson Education, Inc.

© 2011 Pearson Education, Inc.

Item Previous state New state

© 2011 Pearson Education, Inc.

© 2011 Pearson Education, Inc.

© 2011 Pearson Education, Inc.

◆ Statistical definition of a process that

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Improve Analyze (and fix the obvious)

* KPIV/KPOV= Key Process Input and Output Variables

© 2011 Pearson Education, Inc.

© 2011 Pearson Education, Inc.

◆ ‘Pull’ system of production scheduling

◆ Allows reduced inventory levels